DISTILLER’S DRIED GRAINS WITH SOLUBLES (DDGS)
DDGS Comments: DDGS prices have taken a pause from their months-long increase as buyers and sellers reassess market fundamentals. Ethanol production fell slightly this week, but ethanol stocks were down 3.5 percent, which may signal additional production in the coming weeks. FOB ethanol plant DDGS were down $1/MT this week while soybean meal rose $3.60/MT, putting the DDGS/soybean meal ratio at 44 percent, down from the prior week. On a per-protein unit basis, FOB ethanol plant DDGS are $1.08 cheaper than Kansas City soybean meal.
Barge CIF NOLA DDGS values were lower this week as river logistics improve. FOB NOLA DDGS fell as did rail-delivered product to the PNW. Internationally, prices for 40-foot containers to SE Asia increased $7/MT on average as demand remains robust, especially in Indonesia, Malaysia, and Japan. Prices for product destined for Japan increased $20/MT this week while product for Indonesia and Malaysia rose $11/MT.